Life Insurance
True or False? Life Insurance is the same as Health Insurance
False!
True or False? Beneficiaries have to pay estate taxes
False! Beneficiaries are free from estate taxes because the policyholder pays them.
Higher risk clients pay...
Higher premiums
Name two items you can use for loan collateral.
Cars, Jewelry, Stocks, Bonds, Home
True or False? Term life insurance only provides protection for a set period
A life insurance policy is a contract between
The policyholder/insured and the Insurance Company/insurer
In order to take out a policy, you must pay a...
Premium
The only time the Insurance Company can pay out
The insurer/policyholder dies
True or False? You may have to pay a penalty fee if you decide to pay the loan off early.
Provides permanent coverage during an individual’s entire life, with a cash value incentive.
Whole Life Insurance Policy
Name 3 unexpected life events
Answer Varies
The unknown even to which one can attach a probaility is
RISK
Life expectancy figures & risk are assessed using...
Health, Habits, Hobbies, Experiences
Define Loan Maturity
Date when the final payment on a loan is due (when the loan expires)
The policy cost for women and younger people would be...
LOWER Premiums
Define Life Insurance
Replaces lost income if premature death occurs to help loved ones keep their home, eliminate debts, and meet other financial obligations.
Define Risk Avoidance
Avoiding an act that would create a higher risk in life
Define Underwriting
The process insurance companies go through to decide whom they will insure, how much they will insure, and the premiums they will charge the person
The legal claim that allows the lender to take and liquidate the collateral, in case the borrower defaults
A portion that is paid out if the policyholder is expected to die within a year
One question you can ask yourself when deciding on life insurance
Do you need life insurance?
How much life insurance will you need?
Which type of life insurance is best for you?
Name 3 benefits of getting life insurance
Financial protection for dependents after death
Protection from creditors
Tax benefits
Type of Savings vehicle
Name 3 questions the Underwriting team in a Life Insurance company can/will ask
Answer varies
Name 4 loan features
Loan application, Loan collateral, Lien, Loan Maturity, Prepayment penalty, Loan Disclosure Statement
Name 3 Settlement Options
Lump Sum
Interest Only
Fixed Period
Fixed Amount
Life Income